The effect of Fe doping in the Mn site on the magnetic, transport and structural properties of polycrystalline La_1/2Ca_1/2MnO₃ was studied. Doping with low Fe concentration (< 10%) strongly affects electrical transport and magnetization. Long range charge order is disrupted even for the lowest doping level studied (~2%). For Fe concentration up to 5% a ferromagnetic state develops at low temperature with metallic like conduction and thermal hysteresis. In this range, the Curie temperature decreases monotonously as a function of Fe doping. Insulating behavior and a sudden depression of the ferromagnetic state is observed by further Fe doping.